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TikTok will pay $400 million to settle federal child privacy claims

TikTok Agrees to $400 Million Children’s Privacy Settlement

The US Department of Justice has announced a $400 million settlement with TikTok and its parent company, ByteDance, resolving a federal lawsuit filed in 2024. The case alleged that the video platform violated the Children’s Online Privacy Protection Act, commonly known as COPPA, through its handling of accounts and personal information belonging to children.

Federal officials alleged that TikTok collected data from users under 13 without properly notifying their parents or obtaining parental consent. The lawsuit also claimed the company failed to delete children’s accounts after receiving requests from parents. COPPA imposes requirements on online services that collect personal information from young users.

Under the settlement, TikTok will pay $300 million immediately. An additional $100 million will be paid if a court vacates an earlier consent decree involving Musical.ly, TikTok’s predecessor. The Justice Department described the settlement as one of the largest financial recoveries obtained in a COPPA enforcement case.

The department also acknowledged changes at TikTok since the lawsuit was filed. According to officials, the company has revised its ownership and management arrangements, expanded compliance functions, and updated privacy practices. The DOJ said TikTok has introduced measures intended to strengthen protections for younger users, improve age-based controls, and give parents greater oversight.

TikTok did not immediately respond to a request for comment regarding the settlement. Separately, a new joint ownership structure for TikTok’s US operations was completed in January, following prolonged negotiations over the platform’s future in the country.

The agreement ends the Justice Department’s lawsuit without a trial and establishes a substantial financial penalty tied to alleged failures in children’s privacy protections. It also reflects the government’s continued use of COPPA to regulate how major online platforms collect, retain, and manage information associated with minors in the United States going forward.

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